For Long Term Investors: The Cheapest ETF for Every Commodity

After gathering more than $1 trillion in total assets under management, ETFs have cemented their place in the financial world. Among the universe of nearly 1,500 products, commodity funds have garnered a lot of attention, as these products have democratized an asset class that was once difficult to reach by retail investors. Now, there are a number of exchange-traded options to help you gain exposure to your favorite hard assets, all at a low cost.

Posted in Academic Research, Actionable Ideas, Agriculture, Alternative Energy, Aluminum, Asset Allocation, Brent Oil, Cocoa, Coffee, Commodity ETF Analysis, Commodity ETFs, Commodity Futures, Copper, Corn, Cotton, Energy, Gasoline, Gold, Heating Oil, Industrial Metals, Lead, Livestock, Natural Gas, Nickel, Nuclear, Palladium, Platinum, Precious Metals, Silver, Solar, Soybeans, Steel, Sugar, Tin, Wheat, Wind, WTI | Tagged , , , , , , , , , , , , , , , , , | 5 Comments

Which Cotton ETF Is Right For You? BAL vs. CTNN

Simply put, cotton makes an appearance in the daily lives of almost every population around the globe, as this commodity is used in a wide variety of textile products. Since global consumption patterns dictate the fluffy commodity’s movements, cotton prices are known to exhibit volatility, making a trade in cotton a potentially lucrative opportunity for investors and traders alike. Additionally, cotton has been shown to maintain a fairly low correlation to other asset classes, such as stocks, giving investors yet another option to add meaningful diversification to their portfolios.

Posted in Agriculture, Asset Allocation, Commodity ETF Analysis, Commodity ETFs, Commodity Futures, Cotton | Tagged , | 1 Comment

The Five Minute Guide to Cotton ETFs

The world of commodities was not accessible to most average investors just a few short years ago. But today, there are exchange-traded funds that allow investors to gain exposure to many commodities, both as an asset class and as a way to participate in the movements of an individual commodity, even rather obscure ones, without a futures account.

Posted in Actionable Ideas, Agriculture, Asset Allocation, Commodity ETFs, Commodity Futures, Cotton | Tagged , , , , | 3 Comments

The Best (and Worst) Commodity Investments of H1 2012

With the first half of the year officially in the books, investors have plenty of data and developments in the commodity world to talk about. With natural gas jolting back and forth and speculators calling tops and bottoms in crude oil and gold, it has certainly been a busy six months for commodity traders. One of the biggest sticking points for commodities was the speculation of QE3, which was eventually announced in the form of “Operation Twist”, which will likely shape prices for the latter half of the year. But when it comes to some of the best and worst performers from that time period, some of the results may surprise you. Below, we outline the three best and three worst commodity performances from the first half of 2012 [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later].

Posted in Agriculture, Canola Oil, Coffee, Cotton, Soybeans | Tagged , , | 2 Comments

5 Worst Performing Commodity ETPs of 2011

Statistics show that the vast majority of commodity investors come away actually losing money, this was especially true for 2011. This year was a rough one on commodities as global instability created volatile trading, resulting in most of this asset class losing money. But of course with big losers comes a great opportunity to buy in while a fund is still cheap. Though, it may also be that you simply want to stay away from some of these bad-performing funds to protect yourself from more losses. Whatever may be the case, we outline the five worst performing commodity ETPs of 2011. Note that the list is a bit modified in that we only chose one fund from each commodity type and did not include any funds that launched this year [see also Three Things Wall Street Journal Didn’t Tell You About Commodities].

Posted in Agriculture, Cocoa, Corn, Cotton, Energy, Exclusive, Industrial Metals, Natural Gas, Wheat | Tagged , , , , | Leave a comment

Weekly Agriculture Roundup: Hot Cocoa

Like just about every other asset class, agricultural commodities have been on a wild ride over the last several trading sessions, fluctuating along with equity markets as investors have tried to evaluate the latest news out of Europe. The last week has generally been a strong stretch for agricultural and soft commodities, as a rally in stock markets and return to risky assets has created a wave of moderate optimism among investors. The following table shows the performance of several popular commodity exchange-traded products for the week ended November 8. It should be noted that each of the funds included below utilizes futures contracts to achieve its stated objectives; as such, returns may not be reflective of changes in spot prices:

Posted in Cocoa, Coffee, Corn, Cotton, Livestock, Soybeans, Sugar, Wheat | Tagged , , , , , , , , | Leave a comment

Ultimate Guide To Cotton Investing

Cotton is a crop that has been around for centuries and has been important to numerous civilizations throughout history. The crop is most often spun and woven into yarn or textiles to be worn as clothing. In fact, historical evidence suggests that cotton clothing has been around since prehistoric times, and it continues to be an important commodity today. Cotton is the main component of many of our shirts, towels, bed sheets, jeans, socks, underwear, etc. The fluffy commodity is also a popular investment for numerous traders. Cotton has the potential to serve as a useful hedge against inflation, and can also be used for profit during strong economic times, or during times of high demand for raw materials. There are a number of different options to invest in cotton, including futures contracts, stocks of companies engaged in cotton production or planting, and ETFs [see also The Guide To The … See the full story here

Posted in Agriculture, Commodity ETFs, Commodity Futures, Cotton | Tagged , , , | 4 Comments